Editor’s note: FM Perspectives are industry op-eds. The views expressed are the authors’ and do not necessarily reflect those of Facilities Management Advisor.
New York City’s Local Law 97 (LL97) is often looked at as a hurdle for facilities managers and not as a strategic opportunity to improve for the future. As buildings over 25,000 square feet face strict greenhouse gas (GHG) emissions limits—with penalties starting in 2025 and tightening in 2030—compliance is no longer optional. For forward-looking facilities managers, a compliance pathway will not just be seen as a necessity, but also as a way to improve a building’s operations and efficiencies for years to come, leading to long-term financial gains.
Compliance Solutions
To mitigate fines associated with LL97 and to remain under the carbon limits associated with the law, facilities managers can take a few different approaches:
- Distribution Upgrades: Controls upgrades/in-unit upgrades/fuel conversions, etc.
- Partial Electrification: The goal of LL97 is reduction, not elimination; 40% GHG reduction by 2030 and 80% reduction by 2050. Facilities managers can implement retrofit solutions that renew existing heating systems and incorporate high-temperature heat pumps and modern high-efficiency boilers. Buildings can also reduce emissions by decoupling the domestic hot water (DHW) load from the existing boiler with new high-temperature heat pumps, vastly reducing the operating use of the boiler(s) in the summer months and significantly reducing costs.
- Full Electrification: Facilities managers can transition from gas-fired systems to fully electric solutions to meet building energy needs. This approach typically involves integrating technologies such as high-temperature heat pumps, air-source heat pumps, and electric boilers to deliver efficient heating and performance.
Incentives Available to Offset Short-Term Costs
Early adopters will be the ones most rewarded with funding from New York City energy authorities. 2030 is rapidly approaching, and buildings aiming to comply in the next phase should start planning now. Rebates can include utility cost adjustments, capital incentives for higher-efficiency equipment, covered installation costs, and more. When considering the lead times of equipment, installation timelines, and construction/permitting requirements, building owners and facilities managers should have a path for compliance in place by the end of 2026.
Opportunity for Long-Term Growth
Fines can feel daunting and expensive, especially if there isn’t a large trigger event forcing change. However, after taking a deeper dive into the real cost of operation for buildings in New York City, the realization is utility bills only provide information on spending, not what a building is wasting. Decarbonization can encourage a more thoughtful path to efficiency that includes learning how a building is currently performing and how many different upgrades can be installed to change the way a building uses energy. It can be looked at as an opportunity to improve all aspects of the functionality of the building that will allow small upgrades throughout the years to continually improve full system efficiency.
For example: Start with partial electrification by using high-temperature heat pumps for DHW production during summer months. This allows the boiler to remain completely shut down for roughly six months each year—extending its lifespan and cutting operating costs. As confidence is gained with heat pump technology, the system can begin offsetting winter heating loads from the boiler. Eventually, the boiler transitions to a backup role. Finally, integrate renewable sources over time to further boost efficiency and building performance.
The Competitive Edge Is Within Reach
LL97 is a challenge for all entities in New York City, most of all, facilities managers. But it’s also the beginning of something better. Facilities managers that embrace this challenge and adopt new philosophies and technologies won’t just comply; they’ll outperform their competition. Buildings will be more sustainable, more reliable, and offer tenants a better built environment.
Julia Cyr is the lead of sustainability business development at Miller Proctor Nickolas Inc. (MPN Boilers), a 100% employee-owned company with over 60 years of experience providing heating, cooling, and decarbonization solutions in the NYC metro area. The company was recently selected as the winner of the Empire Technology Prize for its steam and hydronic electric retrofit solution to help decarbonize tall buildings in NYC.